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Strengths + Weaknesses of Weimar Economy 1924-29 - Coggle Diagram
Strengths + Weaknesses of Weimar Economy 1924-29
Strengths
New currency-Rentenmark
Dawes Plan-reduced reparations, provided loans + facilitated investment from USA
1 billion marks annually until 1929 + 2.5 billion after
loan of 800 million marks
Young Plan-reduced reparations from 132,000 million marks to 37,000 million
recovery of heavy industry-matched 1913 levels by 1928 + surpassed by 4% in 1929
efficient methods of production-coal mining
increased foreign investment-25.5 billion 1924-30
rise in exports-40% 1925-29
rise in real wages every year 1924-29 + national income 12% higher in 1928 than in 1913
pensions + sickness benefits mid 1920s
compulsory unemployment insurance 1927
state subsidies for construction of local amenities-parks, schools etc
1924-29 received 18,000 million marks in foreign loans + paid 11,000 million marks on reparations
increased cars
growth of cinema
political extremism subsided
Treaty of Berlin between Germany + USSR exchanged German economic expertise for Russian help w/ rearmament
Weaknesses
economic growth was uneven-production decline in 1926
value of imports exceeded exports
unemployment never fell below 1 million + averaged 1.9 million by 1929-2 million at end of 1928
grain production 3/4 of 1913 level
collapse in food prices
widespread debt amongst farmers-1/3 of Germany's population-bc of falling incomes-44% below national average by 1929
rural poverty
world trade never returned to pre-war levels
protective tariffs stifled world trade
loss of resources, population + territory Treaty of V
decline in income reduced spending power-fall in demand
world production fell by 14% (1913) to 11.6% (1926-29)